23 Oct 2014

Restaurant Brands 1st half profit up

1:36 pm on 23 October 2014

Restaurant Brands' first-half profit rose 18.6 percent to $11.495 million

The profit increase was more than double the increase in sales, for the six months ended, early September, to $192.043 million.

A strong performance from KFC helped drive the company's profit and it achieved more competitive input prices for chicken.

KFC's operating profit rose almost 15 percent, with margins improving strongly.

KFC's sales volumes were boosted by the return of KFC's Hot 'n Spicy chicken, some new Double-Down varieties, and a successful rugby sponsorship.

Starbucks Coffee also delivered a strong result with operating profit up 45.5 percent, benefiting from the high New Zealand dollar and continuing store efficiencies.

Pizza Hut's operating profit rose a relatively modest 4.5 percent, as tight operational controls improved margins.

The company's new Carl's Jr burger stores also made a small contribution to the bottom line, with nine stores operating over the period, more than twice the number a year earlier.

The company will pay a first-half dividend of 7.5 cents per share, up 1 cent, from last year.

Restaurant Brands had 174 stores at the end of the first half, exactly the same as for the year before, with the new Carl's Jr stores and KFC acquisitions offsetting the closures of some Pizza Hut and Starbucks Coffee stores.

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